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djverab [1.8K]
3 years ago
12

The Adams Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimati

ng a company’s cost of internal equity. Adams’s bonds yield 10.28%, and the firm’s analysts estimate that the firm’s risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Adams’s cost of internal equity is:
Business
1 answer:
tino4ka555 [31]3 years ago
5 0

Answer:

the cost of internal equity is 16.17%

Explanation:

The computation of the cost of internal equity is shown below:

= Yield of the bond + risk premium of the firm

= 10.28% + 4.95%

= 16.17%

Hence, the cost of internal equity is 16.17%

Basically we add the two things so that the cost of internal equity could be determined

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___ comes from increases in the money supply.
vagabundo [1.1K]

Answer:

Consumer Price Index (CPI)

Explanation:

1- By definition CPI is the weighted average of a consumer's basket volume for any purchase service or good. When money supply increases, GDP increases, and the spending of a customer increases. Hence resulted in increased CPI.

2- Interest rate decreases when money supply increases

3- Inflation is by definition a steady increase in the money supply if a country. So one can be replaced by another. Inflation does not come from money supply increase, it is in fact money supply increase

8 0
3 years ago
Read 2 more answers
a landscape archetiect is hired to build a garden which is of the shape of a right traingle. suppose the architech wants to use
vlabodo [156]

Answer:

Maximum Ares architect can build is 36,450 ft^{2}

Explanation:

Suppose

The Perpendicular of the triangle = l

The Base of the triangle = b

The hypotenuse of the triangle = h

The hypotenuse of the triangle can be calculated as follow

h = \sqrt{l^{2} b^{2} }

Total Budget = $1,620

As the architect does not want to build anything on the hypotenuse of the triangle area.

So as per given condition

( $9 x l ) + ( $3 x b ) = $1,620

$3 ( 3l + b ) = $1,620

3l + b = $1,620 / $3

3l + b = 540

b = 540 - 3l ...........(1)

Area = 1/2 x l x b

using (1) we will have

Area = 1/2 x l x ($540 - 3l)

Now differentiating w.r.t l

\frac{d(area)}{dl} = \frac{\frac{1}{2} [ 540l - 3l^{2}] }{dl}

0 =  \frac{1}{2} [ 540 - 6l] }

0 = 540 - 6l

6l = 540

l = 540/6

l = 90 ft

Placing value of l in (1)

b = 540 - 3(90)

b = 540 - 270

b = 270

So, Maximum area will be calculated as follow

Maximum Ares = \frac{1}{2} x 270 x 270

Maximum Ares = 36,450 ft^{2}

7 0
3 years ago
When tax revenue is higher than government expenditures, the government incurs a:?
Ksju [112]

I guess the correct answer is budget surplus.

When tax revenue is higher than government expenditures, the government incurs a budget surplus.

6 0
3 years ago
Identical products, as well as a large number of buyers and sellers, are characteristics of a perfectly competitive market. In s
Rus_ich [418]

Answer:

The correct answer is True.

Explanation:

A perfectly competitive market has the following characteristics:

• There are many buyers and sellers in the

market.

• The goods offered by the different sellers

They are largely identical.

• Companies can freely enter and exit the

market.

As a result of these characteristics, perfectly competitive markets, result in:

• The actions of any buyer or seller

have an insignificant impact on the price of

market.

• Each buyer and seller takes the prices of

Market as dice.

A competitive market has many buyers and sellers trading with identical products so that each buyer and seller is price-accepting.

• Buyers and sellers must accept the price

determined by the market.

6 0
3 years ago
Cleghorn Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit $160
vagabundo [1.1K]

Answer:

$273,600

Explanation:

The selling price per unit is $160

Variable expense per unit is $70.40

Fixed expense per month is 153,216

Therefore the monthly breaking can be calculated as follows

CM ratio = 56%

=>56/100

= 0.56

= 153,216/0.56

= 273,600

Hence the monthly break even in monthly dollars sales is $273,600

7 0
3 years ago
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